The slide in the headline inflation rate to 7.81 per cent during the year to September 4 will boost trading sentiment.


Inflation dip to boost liquidity

Business Standard

Rupee ends at 46.10/$

The corporate bonds segment remains lacklustre and will continue to be so till companies finalise their borrowing programme for the year.


Lack of credit plans keeps trend lacklustre

Look out for the telltale signs of a habitual defaulter...

Getting out of the debt trap

Makes sense to opt for fixed-cum-floating one, as rates are on an upward trend.

Consider taking a home loan now

The rupee rose, completing a second weekly gain, as a rally in local shares spurred optimism overseas investors will increase purchases of the nation&rsquo;s assets to benefit from accelerating economic growth.

Re completes 2nd weekly gain as growth lures funds

Recently, I received a mailer from my bank about investing in an upcoming initial public offer (IPO) through the applications supported by blocked amount (Asba) route.

Banking: Manju Srivatsa

Savings rate deregulation, if implemented, is likely to lead to high volatility in returns.

Market forces take over bank accounts

The 10-year bonds fell the most in more than a month as industrial production exceeded economists' estimates, fuelling concern the central bank will raise interest rates at a policy review this week.

Bonds drop most in a month as factory output quickens

No-frills accounts are proving to be a growing business opportunity.

Banks see gains from inclusion

The improving growth outlook and commitment to price stability have prompted the Reserve Bank of India (RBI) to raise the policy rates to contain rising demand-side inflation pressures. Going forward, we expect growth to remain robust with gross domestic product likely to grow at around 8.5 per cent in 2010-11. Our projections show that WPI inflation has already peaked and is set to steadily decline. With the onset of the busy season, credit is likely to pick up further but much depends on the evolving liquidity situation. Also, the improving outlook for global growth could see commodity prices firm up. In this milieu, RBI has acted to anchor inflationary expectations without hurting growth.

Comment: O P Bhatt, Chairman, State Bank of India

The Reserve Bank of India (RBI) in its mid-quarter policy review has reiterated its confidence in the growth prospects for the Indian economy, driven by a strong industrial sector, sustained growth in the services sector and better performance in the agriculture sector aided by good monsoons. RBI has also expressed confidence on the fiscal deficit remaining within targeted levels.

Comment: Chanda Kochhar, CEO & MD, ICICI Bank

A successful monetary policy implies strong commitment to a nominal anchor, that is the use of policy statements and instruments to maintain low and stable inflation. The Reserve Bank of India&rsquo;s (RBI&rsquo;s) sustained efforts to contain inflation and anchor inflationary expectations since October 2009 has helped it bring the monetary situation close to normal.

Comment: M D Mallya, CMD, Bank of Baroda

Comment: Gunit Chadha, Deutsche Bank (India)

India Inc on Thursday expressed fear that the Reserve Bank of India&rsquo;s decision to raise key short-term rates would push up the cost of borrowing, making some of their projects unviable and hurting expansion plans.

RBI's move to hurt industry, derail projects: India Inc

Press Trust of India

Says this raises doubts about how effectively the index reflects momentum.

RBI unhappy with high volatility in IIP data

With inflation reaching a plateau and in Reserve Bank of India's (RBI) own terms, 'normalisation as a motivation for further action is likely to be less important', market participants expect the central bank to go in for one more round of rate increases before hitting the pause button.

Market expects one more, and final, rate increase

Unfortunately, banks look set to raise lending rates by October, too.

RBI pitches for higher deposit rates

Reserve Bank of India&rsquo;s rate increase action had a limited impact on the money market and short-term paper, while bank borrowings from the central bank&rsquo;s liquidity window shot past the Rs 50,000-crore mark.

Action evokes small rise in short-term rates; liquidity tight till month end

The width between the key policy rates, as economists suggest, tend to remain broad during uncertain times. The narrowing of the gap indicates normalcy returning to the domestic economy.

Volatility in short-term rates should abate

The improvement in global investor sentiments may ease the headache of managing risks on the external front for the Reserve Bank of India (RBI). The apparent stabilisation in advanced economies &ndash; visible over the past few weeks &ndash; appears to have improved global investor sentiment, resulting in a steady increase in capital inflows into emerging market economies (EMEs), including India.

Better sentiments may cut external risk

Financial Analysis: Find the Latest Financial News Analysis & Research Updates from all top sources for the Indian Finance industry on Business Standard.

Finance News Analysis, Financial Analysis and Research | Business Standard

Find the Latest Financial News Analysis & Research Updates from all top sources for the Indian Finance industry on Business Standard.

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